Southwest Airlines Co. [LUV] is -13.17% lower this YTD. Is it still time to buy?

Southwest Airlines Co. [NYSE: LUV] plunged by -$0.23 during the normal trading session on Tuesday and reaching a high of $37.87 during the day while it closed the day at $37.20. The company report on August 19, 2022 that SOUTHWEST AIRLINES ANNOUNCES REDEMPTION OF 4.750% NOTES DUE 2023.

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Southwest Airlines Co. (NYSE: LUV) (the “Company”) today announced that it will redeem all of its outstanding 4.750% Notes due 2023 (the “Notes”). The aggregate principal amount outstanding of the Notes is $1,234,195,000.  The redemption price for the Notes will be equal to the greater of (i) 100% of the principal amount thereof and (ii) the “make-whole” redemption premium specified in the indenture, as supplemented by the officers’ certificates, governing the Notes, plus, in either case, accrued and unpaid interest to the redemption date. The redemption of the Notes is scheduled to occur on August 31, 2022. The Company intends to fund the redemption with cash on hand. On and after the redemption date, the Notes will no longer be deemed outstanding, interest will cease to accrue thereon, and all rights of the holders of the Notes will cease, except for the right to receive the redemption price.

Computershare Trust Company, N.A., as successor trustee to Wells Fargo Bank, National Association, is the trustee for the Notes and is serving as the paying agent for this transaction. Copies of the Notice of Redemption and additional information relating to the redemption of the Notes may be obtained from Computershare Trust Company, N.A., Attn: Corporate Trust Operations, MAC N9300‑070, 600 South Fourth Street, 7th Floor, Minneapolis, MN 55415 or 800 344-5128.

Southwest Airlines Co. stock has also loss -0.72% of its value over the past 7 days. However, LUV stock has declined by -18.88% in the 3 months of the year. Over the past six months meanwhile, it has lost -11.32% and lost -13.17% year-on date.

The market cap for LUV stock reached $22.67 billion, with 593.00 million shares outstanding and 591.29 million shares in the current float. Compared to the average trading volume of 5.64M shares, LUV reached a trading volume of 4228647 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Southwest Airlines Co. [LUV]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LUV shares is $52.87 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LUV stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Argus have made an estimate for Southwest Airlines Co. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 15, 2022. The new note on the price target was released on July 12, 2022, representing the official price target for Southwest Airlines Co. stock. Previously, the target price had yet another drop from $57 to $55, while Raymond James kept a Strong Buy rating on LUV stock.

The Average True Range (ATR) for Southwest Airlines Co. is set at 1.06, with the Price to Sales ratio for LUV stock in the period of the last 12 months amounting to 1.07. The Price to Book ratio for the last quarter was 1.98, with the Price to Cash per share for the same quarter was set at 26.96. Price to Free Cash Flow for LUV in the course of the last twelve months was 8.02 with Quick ratio for the last quarter at 1.60.

LUV stock trade performance evaluation

Southwest Airlines Co. [LUV] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.72. With this latest performance, LUV shares dropped by -2.90% in over the last four-week period, additionally sinking by -11.32% over the last 6 months – not to mention a drop of -24.34% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LUV stock in for the last two-week period is set at 40.85, with the RSI for the last a single of trading hit 36.94, and the three-weeks RSI is set at 42.94 for Southwest Airlines Co. [LUV]. The present Moving Average for the last 50 days of trading for this stock 38.27, while it was recorded at 37.70 for the last single week of trading, and 42.52 for the last 200 days.

Southwest Airlines Co. [LUV]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Southwest Airlines Co. [LUV] shares currently have an operating margin of -7.82 and a Gross Margin at +7.34. Southwest Airlines Co.’s Net Margin is presently recorded at +6.19.

Return on Equity for this stock inclined to 10.13, with Return on Assets sitting at 2.61.

Southwest Airlines Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.70.

Southwest Airlines Co. [LUV]: Insider Ownership positions

There are presently around $16,937 million, or 80.10% of LUV stock, in the hands of institutional investors. The top three institutional holders of LUV stocks are: VANGUARD GROUP INC with ownership of 64,223,493, which is approximately 1.896% of the company’s market cap and around 0.10% of the total institutional ownership; PRIMECAP MANAGEMENT CO/CA/, holding 52,919,924 shares of the stock with an approximate value of $1.97 billion in LUV stocks shares; and STATE STREET CORP, currently with $1.49 billion in LUV stock with ownership of nearly -1.581% of the company’s market capitalization.

Positions in Southwest Airlines Co. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 396 institutional holders increased their position in Southwest Airlines Co. [NYSE:LUV] by around 26,331,432 shares. Additionally, 498 investors decreased positions by around 26,292,860 shares, while 194 investors held positions by with 402,670,223 shares. The mentioned changes placed institutional holdings at 455,294,515 shares, according to the latest SEC report filing. LUV stock had 73 new institutional investments in for a total of 4,286,651 shares, while 131 institutional investors sold positions of 3,624,875 shares during the same period.


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